Acting Chairperson Wiebusch convened a meeting of the Nebraska
Real Estate Commission at 9:05 a.m. on May 19, 2004, in the Fireside Room of the
Days Hotel Carlisle, located at 10909 M Street in Omaha, Nebraska. All of the
members of the Real Estate Commission were present, with the exception of
Chairperson Gale, who was absent and excused. Also present were Director Les
Tyrrell, Deputy Director for Education Teresa Hoffman, Deputy Director for
Enforcement Terry Mayrose, and Administrative Assistant Heidi Burklund. Abbie
Widger, Special Assistant Attorney General and Counsel to the Commission, was
present for the rule hearing and VOW discussion, and served as an advisor during
the disciplinary hearing. Rob Kinsey, Special Assistant Attorney General and
Counsel to the Commission, was present for the disciplinary hearing.

Notice of Meeting (Adopt Agenda)

Director Tyrrell presented a public notice and proofs of
publication thereof relating to this meeting, all of which are attached to and
made a part of these minutes. Acting Chairperson Wiebusch reported that all
Commissioners had been notified of the meeting simultaneously, in writing, and
that a proposed tentative agenda accompanied the notification.

Acting Chairperson Wiebusch pointed out to those in attendance
that a public copy of the materials being used during the meeting was available
to the public on the counsel table in the meeting room, and that the procedures
followed were in accordance with the Open Meetings Law. Acting Chairperson
Wiebusch asked that guests sign the guest list.

Director Tyrrell noted that agenda items 10a and 16d had been
added since the tentative agenda was mailed to the Commissioners.

After review of the final agenda, a motion was made by Johnson
and seconded by Moline to adopt the final agenda as presented. Motion carried
with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and
with Gale not participating or voting, being absent and excused.

Minutes of April 1, 2004

The minutes of the Commission meeting held on April 1, 2004,
were considered.

After review, a motion was made by Moline and seconded by Strand
to approve the minutes as presented. Motion carried with Moline, Poskochil,
Shepard, Strand and Wiebusch voting aye, with Johnson not participating or
voting, not having been present at the meeting, and with Gale not participating
or voting, being absent and excused.

Receipts and Expenditures Reports

Director Tyrrell presented the Receipts and Expenditures Reports
for March and April. Copies of said reports are attached to and made a part of
these minutes.

Regarding the March report, Director Tyrrell noted that there
was nothing unusual to report in Receipts. Expenditures Category 521100, Postage
Expense, and Category 521500, Publication & Printing, were considerably over
the budgeted amount for the current month due to mailing license manual updates;
Category 522200, Conference Registration Fee, consisted of fees for the Omaha
ARELLO meeting; and Category 583300, Computer Hardware Equipment, was to replace
an examiner

=s
printer.

The cash fund balance as of March 31, 2004, was $901,342.47,
which compared to a cash fund balance of $794,000.80 on March 31, 2003.

Regarding the April report, Director Tyrrell noted that there
was nothing unusual to report in Receipts. Expenditures Category 515500, Health
Insurance Expense, was over on the current month

=s
budgeted amount, because the Legislature=s
removal of approximately $6100.00 in excess appropriation from this category was
prorated over the remaining three months of the budget year; Category 516400,
Unemployment Compensation, showed the last payment to a former staff person;
Category 521200, Communication V/D Expense, was $1185.00 for staff telephone
headsets; Category 521500, Publication & Printing, was considerably over the
budgeted amount for the month, but was OK for the year, and included $7200.00 to
print license manuals with tabs for new licensees; Category 522200, Conference
Registration Fee, was for the Real Estate Educators Association (REEA)
conference previously approved by the Commission; and Category 572100,
Commercial Transportation, was for airline tickets to the Joint District Meeting
in South Carolina for Director Tyrrell and Deputy Director Hoffman, and for
airline tickets for Deputy Director Hoffman to attend the REEA conference.

The cash fund balance as of April 30, 2004, was $861,766.33,
which compared to a cash fund balance of $753,204.69 on April 30, 2003.

After discussion, a motion was made by Moline and seconded by
Johnson to file the March and April Receipts and Expenditures Reports for audit.
Motion carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch
voting aye, and with Gale not participating or voting, being absent and excused.

Director Tyrrell presented a time-share registration report for
Fairfield Smoky Mountains II, and an amendment to a time-share registration for
Vacation Village at Parkway. A copy of said report is attached to and made a
part of these minutes.

Following discussion, a motion was made by Strand and seconded
by Moline to approve the registrations as presented. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

Deputy Director Hoffman presented for ratification the
Non-Resident Licenses and Resident Licenses Issued to Persons Holding Licenses
in Other Jurisdictions Report, a copy of which is attached to and made a part of
these minutes.

After review, a motion was made by Moline and seconded by
Shepard to ratify issuance of the licenses as set forth in the report. Motion
carried with Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting
aye, and with Gale not participating or voting, being absent and excused.

Reciprocal Agreement with Pennsylvania Real Estate Commission

Deputy Director Hoffman presented an exhibit which consisted of
the proposed reciprocal agreement with Pennsylvania, a copy of which is attached
to and made a part of these minutes.

Deputy Director Hoffman noted that it was a fairly typical
agreement, which will allow Nebraska licensees to obtain reciprocal Pennsylvania
licenses and allow dual license holders to meet continuing education
requirements in their resident jurisdiction only. If a non-resident licensee
moved to Pennsylvania, s/he would have to pass the Pennsylvania portion of the
examination.

After discussion, a motion was made by Moline and seconded by
Poskochil to authorize Director Tyrrell to enter into the reciprocal agreement
with Pennsylvania. Motion carried with Johnson, Moline, Poskochil, Shepard,
Strand, and Wiebusch voting aye, and with Gale not participating or voting,
being absent and excused.

Examination Reports - March and April

Deputy Director Hoffman presented for ratification the March and
April Examination Reports, copies of which are attached to and made a part of
these minutes.

After review, a motion was made by Strand and seconded by
Shepard to ratify the March and April Examination Reports for the purpose of
issuing licenses. Motion carried with Johnson, Moline, Poskochil, Shepard,
Strand, and Wiebusch voting aye, and with Gale not participating or voting,
being absent and excused.

Real Estate Education Matters

Prelicense Education Instructor Approval

Deputy Director Hoffman presented for ratification the
Prelicense Education Instructor Approval Report, a copy of which is attached to
and made a part of these minutes.

Continuing Education Activity Approval

Deputy Director Hoffman presented for ratification the
Continuing Education Activity Approval Report, a copy of which is attached to
and made a part of these minutes.

Deputy Director Hoffman noted that the last activity listed was
on indoor air quality, and how construction technology affected it, which was
why it got the

AR@
designation. Director Tyrrell said staff could make a parenthetical reference to
environmental concerns on the Commission=s
list of approved courses.

Continuing Education Instructor Approval

Deputy Director Hoffman presented for ratification the
Continuing Education Instructor Approval Report, a copy of which is attached to
and made a part of these minutes.

After review, a motion was made by Moline and seconded by
Poskochil to ratify the reports. Motion carried with Johnson, Moline, Poskochil,
Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or
voting, being absent and excused.

Correspondence Course Study Group Discussion

Deputy Director Hoffman reminded the Commission of the
discussion at the last meeting regarding sponsored study groups for
correspondence courses from distance education providers, and the problems that
may arise when students are encouraged to rely on the coordinators themselves,
rather than the recognized and approved providers and faculty. The Commission
had felt study groups may be appropriate in some situations, and wanted to
support them when appropriate. Deputy Director Hoffman had worked with Harold
Briley, who oversees private post-secondary schools for the Department of
Education, and he saw no violation of their rules. Mr. Briley likened it to
tutoring, which happens fairly frequently. In talking to prelicense distance
education providers and others concerned, Deputy Director Hoffman suggested the
Commission should establish lines of communication with study group
coordinators, and instead of discouraging study groups, help to make them
better. There are only two schools doing prelicense distance education, so these
administrators could let Commission staff know when study groups formed.
Commission staff could then seek to establish communication with these
coordinators. The Commission could try it and determine whether this makes a
positive impact on students.

Commissioner Moline said that would be great. Rural areas had
trouble educating people. This solution should work for both sides. Commissioner
Poskochil agreed that this should provide much better results.

Commissioner Strand asked if Deputy Director Hoffman was in
regular communication with distance education providers. Deputy Director Hoffman
said yes. Commissioner Strand said she could continue to have them let students
know to stay in communication also. Deputy Director Hoffman agreed, and said at
least one provider was considering having study group coordinators approved as
instructors, to ensure quality.

Acting Chairperson Wiebusch asked where the study groups were
located. Deputy Director Hoffman said both study groups of which she was aware
were in Norfolk. The groups did not form that often, and she could not analyze
their effectiveness because she did not know how many or which applicants had
used them.

The consensus of the Commission was to work with study groups to
keep the lines of communication open. Commissioner Moline said staff should
encourage and nurture them.

No action was necessary on this report.

Pending Sworn Complaints and Investigative Matters

Director Tyrrell presented a summary report of the pending
complaints, which included a list of licensees presently under disciplinary
action or on appeal. A copy of said report is attached to and made a part of
these minutes.

Director Tyrrell reported that the Commission

=s
decision on the Pelshaw complaint was upheld upon appeal to the District Court,
and Mr. Pelshaw had decided not to appeal the District Court decision.

No action was necessary on this report.

The following sworn complaints and investigative matters were
presented to the Commission:

Item A Complaint #2003-053 - Trenton Reed vs. Martin Ian
Cohen

Deputy Director Mayrose presented the alleged violations and
investigative report to the Commission and, when necessary, answered questions
on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Poskochil and seconded by Moline that the
complaint be dismissed without prejudice. Motion carried with Johnson, Moline,
Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not
participating or voting, being absent and excused.

Item B Complaint #2004-011

Deputy Director Mayrose presented the alleged violations and
investigative report to the Commission and, when necessary, answered questions
on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Strand and seconded by Moline that the
complaint be dismissed without prejudice. After discussion, the mover withdrew
the motion.

After further discussion, a motion was made by Poskochil and
seconded by Johnson that the complaint be set for hearing on the violations
alleged in the investigative report. Motion carried with Johnson, Moline,
Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not
participating or voting, being absent and excused.

Item C Complaint #2004-012 - Commission vs. Mark A.
Nichols

Item D Complaint #2004-013 - Commission vs. Charles Wing
Concannon

Item E Complaint #2004-014 - Commission vs. Joseph John
Valenti

These complaints were about the same situation, so the
Commission considered them together. Deputy Director Mayrose presented the
alleged violations and investigative report to the Commission and, when
necessary, answered questions on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Moline and seconded by Shepard that all three
complaints be dismissed without prejudice. Motion carried with Johnson,
Moline, Shepard, and Strand voting aye, with Poskochil and Wiebusch voting
nay, and with Gale not participating or voting, being absent and excused.

Item F Complaint #2004-015 - Jerome Rohde vs. Dexter R.
Wolf

Prior to discussion of this matter, Commissioner Moline
recused himself, thereby nullifying any potential conflict of interest. Deputy
Director Mayrose presented the alleged violations and investigative report to
the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Poskochil and seconded by Johnson that the
complaint be dismissed without prejudice. Motion carried with Johnson,
Poskochil, Shepard, Strand, and Wiebusch voting aye, with Moline recused, and
with Gale not participating or voting, being absent and excused.

Prior to discussion of this matter, Commissioner Johnson
recused himself, thereby nullifying any potential conflict of interest. Deputy
Director Mayrose presented the alleged violations and investigative report to
the Commission and, when necessary, answered questions on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Strand and seconded by Moline that the
complaint be dismissed without prejudice. Motion carried with Moline,
Poskochil, Shepard, Strand, and Wiebusch voting aye, with Johnson recused, and
with Gale not participating or voting, being absent and excused.

Item H Complaint #2004-023

Deputy Director Mayrose presented the alleged violations and
investigative report to the Commission and, when necessary, answered questions
on this matter.

After being advised of the results of the investigation and
discussion, a motion was made by Moline and seconded by Strand that the
complaint be dismissed without prejudice against Respondent A, and held in
abeyance until Respondent B either renewed his/her salesperson license or
could no longer renew the license after June 30, 2004. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

Presentation of Stipulation and Consent Orders

Complaint #2004-029, Commission vs. Gary W. Fenster

Deputy Director Mayrose presented a stipulation and consent
order in the matter of Complaint #2004-029, Commission vs. Gary W. Fenster. A
copy of said order is attached to and made a part of these minutes. Mr. Fenster
was not present.

Deputy Director Mayrose reviewed the circumstances involved and
noted the provisions of the order, which had been signed by Mr. Fenster. The
order specified a censure, plus additional continuing education consisting of a
12-hour Iowa prelicense course entitled

ADeveloping
Professionalism and Ethical Practices@
to be completed within six months.

After discussion, a motion was made by Moline and seconded by
Strand to enter into the order as presented. Motion carried with Johnson,
Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not
participating or voting, being absent and excused.

At 10:03 a.m. on May 19, Acting Chairperson Wiebusch called to
order the public hearing on the proposed amendments to Title 299, Chapter 8, of
the Commission

=s
Rules and Regulations. Acting Chairperson Wiebusch explained that the hearing
would be conducted in accordance with the Administrative Procedure Act, and
explained how testimony would be given.

Director Tyrrell presented three exhibits, which included: 1) a
copy of the meeting notice, which was published in two newspapers and filed with
the Secretary of State, the Executive Board of the Legislative Council, and the
Governor

=s
Policy Research Office; 2) a copy of the Lincoln Journal-Star and Omaha Daily
Record proofs of publication of the meeting notice; and 3) a copy of the
proposed amendments to Title 299, Chapter 8, in legislative style. Exhibit 3
(denoted as item 11a in the Commissioner packets) is attached to and made a part
of these minutes.

Director Tyrrell reviewed the proposed amendments set out in
Title 299, Chapter 8. No comments had been received prior to the meeting, and no
one appeared either for or against the proposed amendments at the hearing.

After discussion, a motion was made by Moline and seconded by
Strand that the Commission adopt Title 299, Chapter 8, with the proposed
amendments as presented; to direct staff complete the filing process for the
proposed rule changes; and to authorize staff to make any non-substantive
grammatical, spelling, or punctuation corrections needed. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

A hearing was held on May 19, at 10:35 a.m., in the matter of
Complaint #2004-009, Commission vs. Sharon J. Martin. Rob Kinsey, Special
Assistant Attorney General and Counsel to the Commission, appeared for the
Complainant. Respondent Sharon J. Martin was present without counsel. Counsel
Widger served as an advisor to Acting Chairperson Wiebusch regarding evidentiary
rulings.

After opening statements, Counsel Kinsey presented 22 exhibits,
all of which were offered and received by Acting Chairperson Wiebusch. Counsel
Kinsey called Ms. Martin, Daniel Vescio, Julie Erickson, Thomas Webster, and
Deputy Director for Enforcement Terry Mayrose as witnesses.

At 12:20 p.m., Acting Chairperson Wiebusch declared a recess for
lunch, and reconvened the meeting at 12:45 p.m.

Ms. Martin presented five exhibits, all of which were offered
and three of which were received by Acting Chairperson Wiebusch. Ms. Martin
called no witnesses.

After closing arguments had been presented, Acting Chairperson
Wiebusch declared the hearing concluded.

Commissioner Shepard said that, per Ms. Martin

=s
testimony, the owner had clearly signed the lease. It was for a significant
amount of money, so the Commission could presume he read it. There may be an
issue of whether the lease was written correctly, but the owner signed it. As
far as not looking out for the client in how it was written, that should not be
considered. If the owner and tenant talked, and she was not privy to the
discussion, it was hard to hold her responsible. She was not aware of their
agreements until closing. She tried to help the seller at that point, to get
their agreements in writing. Commissioner Shepard said that was his opinion
only, on that one issue.

Commissioner Poskochil said he concurred on the lease itself,
that it was based on the information she had at the time, and all parties
received and signed it. Based only on the testimony today, she had everyone

=s
consent, and they had knowledge, because all parties had a copy of the lease.
There may be a problem with the knowledge of the buyer regarding the addendums.
With a one-party listing agreement, it was Ms. Martin=s
responsibility to know the laws of Nebraska, and what needed to be included. She
was also responsible to make sure all forms required by law were properly
completed. There was a negligence issue, with her not following through. She may
have been in and out of the office, but she still had the fiduciary
responsibility to make sure the listing was correct, and not expired. She did
not have a valid listing at the time of the addendums. That was a responsibility
Ms. Martin had to take seriously for her client. Ms. Martin had testified that
she did not know where the form came from, but she had to have knowledge of it,
to make sure she was accountable. Agency disclosure was a very important form,
so that all parties understood whom a licensee was representing in the
transaction. Agency disclosure was the #1 complaint the Commission received. Ms.
Martin had to take it seriously, to make sure that it was filled out correctly,
that the parties understood it, and that she got a completed copy. It was very
important, and it was not an excuse to say that she did not have one. A lot of
things are done for the principal in the transaction, but licensees are also
responsible to their broker. Commissioner Poskochil would take the advice of his
broker on how to handle a situation.

A motion was made by Moline and seconded by Strand to find the
respondent guilty of violating Neb. Rev. Stat. Section 81-885.24(29).

Commissioner Moline said Ms. Martin failed to do basic things
that should have been done, such as completing agency forms and extending the
listing when addendums modified it.

A motion was made by Poskochil to amend the motion, to add a
violation of Neb. Rev. Stat. Section 76-2418(1) regarding drafting the lease.
The motion died for lack of a second.

A vote was taken on the pending motion. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

Acting Chairperson Wiebusch then opened the disciplinary
envelope. No prior disciplinary actions were on file.

A motion was made by Johnson and seconded by Moline that Ms.
Martin be required to complete at least 3 hours of additional continuing
education in agency. Johnson amended his motion to include a censure of Ms.
Martin

=s
license, and to require that the continuing education be completed within 6
months. The seconder agreed to the amendment.

Commissioner Strand called the question. A vote was taken on the
pending motion, as amended. Motion carried with Johnson, Moline, Poskochil,
Shepard, Strand, and Wiebusch voting aye, and with Gale not participating or
voting, being absent and excused.

Acting Chairperson Wiebusch notified the Respondent that the
costs incurred for the court reporter and any witness fees would be billed to
the Respondent, as provided for in 305 NAC Chapter 4, and that the Respondent
would have thirty days from the date of the order to reimburse the Commission
for said costs.

With the consent of the Respondent, Acting Chairperson Wiebusch
directed Counsel Kinsey to prepare the order.

Acting Chairperson Wiebusch announced that all exhibits related
to this hearing would be retained in the Commission office.

=
special appearance, information regarding Mr. Viveros=
criminal history, reference letters, and prelicense education completion
certificates. A copy of said exhibit is attached to and made a part of these
minutes. Mr. Viveros was present.

Acting Chairperson Wiebusch reviewed the procedure for informal
special appearances.

Mr. Viveros said he had talked about real estate with a friend
with whom he worked. They decided to go to real estate classes together. Halfway
through the first course, he found out about the criminal background check. He
had gotten into trouble with the law once in his life. He talked to his
instructor, and she said it would be good to be honest about it. The instructor
said to call the Commission. Mr. Viveros talked to Director Tyrrell, who told
him he would need to make a special appearance.

Mr. Viveros said he had two jobs. He worked from 9:30 p.m. to 7
a.m., took an hour nap, then worked 8:30 a.m. to 5 p.m., got 3 hours of sleep,
and went to work again. When he got in trouble, it was the lowest point in his
life. He had never been in jail before, and he felt real bad. He had promised
himself that by age 30, he would have a family and settle down. Instead, he
turned 30 in jail, and felt real bad about letting himself down. He decided to
change things around. He spent 120 days in the county jail, but made something
useful of his time by getting his GED. He had come to the United States at 18
and always had a job, but had never gone to school here. As a teenager, he
wanted a car, so he needed a job and did not have time for school. He had to
work to achieve his dream of getting his car. In jail, he passed 3 finals in 4
months. He got out on bond, with the condition of going to a rehabilitation
center, because he had used drugs and especially alcohol. He completed a 2-month
program. A year went by before he was sentenced, and he got probation because of
his clean record. The judge gave him a chance. He had decided inside his heart
that he would turn everything around, and he had analyzed everything in his
life. The Iowa probation officer released him from probation in 3 years instead
of 5 for good behavior, and he had completed 200 hours of community service in
less time than was required.

When Mr. Viveros took the real estate courses, he looked at it
as an opportunity for a better job. His night job is sanitation, and he works
with chemicals. His day job is painting cars, which also involves solvents and
chemicals. He will not be able to last long at that job. Painters move to being
body men or something else because of the chemicals and solvents. While taking
courses, he realized a lot of things, such as there are a lot of people who did
not have a house; being bilingual would help; and he would be involved in the
Hispanic community, which was growing. Mr. Viveros had been going to Alcoholics
Anonymous for 8 years, since he stopped drinking, using anything, and even
smoking. He had come in touch with a lot of people there, who the police send
there to improve themselves and to give them a chance to quit drinking. It was
the American dream to have a roof over your head, and feel a part of the
community. That was why he wanted to get a license, to have the satisfaction of
helping people get a house.

Acting Chairperson Wiebusch asked when Mr. Viveros was in jail
originally. Mr. Viveros said April 1996. Commissioner Moline asked on what
charge. Mr. Viveros said it was possession with intent. Acting Chairperson
Wiebusch said that would be intent to distribute.

Acting Chairperson Wiebusch noted that one letter from the
probation officer said Mr. Viveros was put on probation on 9-12-97, and
discharged 9-12-02. She said the Commission considered whether an applicant

=s
civil rights were restored. Mr. Viveros said that, as a legal resident, he was
not allowed to vote unless he became a citizen. Mr. Viveros said he will apply
for a pardon after it had been 10 years.

Commissioner Poskochil noted that Mr. Viveros said he came here
at age 18, and asked if he lived here for 12 years before his arrest. Mr.
Viveros said yes. Commissioner Poskochil asked where Mr. Viveros worked prior to
his arrest. Mr. Viveros said he did body work on cars. Commissioner Poskochil
asked if Mr. Viveros lived in Nebraska or Iowa. Mr. Viveros said he lived in
Council Bluffs, in the same house for 6 years. Commissioner Poskochil noted it
was a felony conviction, and asked what was the quantity. Mr. Viveros said he
thought the package was about a pound, but he did not weigh it. Commissioner
Poskochil said that was a pretty big amount. Mr. Viveros said the judge said it
was worth about $10,000.

Commissioner Poskochil asked how Mr. Viveros got involved in
drugs. Mr. Viveros said his brother introduced him to the guy, and he became
friends with him. The guy was a drug user and also an informant. Mr. Viveros
said the government let informants do whatever they wanted to do, but every so
often they had to turn someone in. The guy talked Mr. Viveros into it for that.
Mr. Viveros used weed at the time, and no other drugs. The guy convinced Mr.
Viveros to do it. Mr. Viveros had been in Omaha for about 2 years, he had not
known the winters were so bad, he was laid off from a couple of jobs, and he was
kind of forced to do what he did. Mr. Viveros was not dealing with anyone else,
just that guy, and it was a one-time thing. Looking back, Mr. Viveros was glad
he got arrested. If he would have continued with drugs, he would probably be in
jail for the rest of his life or killed by now. It was a good experience.

Commissioner Poskochil asked where else Mr. Viveros had lived.
Mr. Viveros said he moved to California in 1984, and to Omaha in 1994.
Commissioner Poskochil asked if Mr. Viveros had any other criminal history. Mr.
Viveros said no. Commissioner Poskochil asked if Mr. Viveros had a driver

=s
license. Mr. Viveros said yes. Commissioner Poskochil asked if Mr. Viveros had
any traffic violations, such as negligent driving or anything like that. Mr.
Viveros said he had one traffic violation for a flashing red light a couple of
years ago.

Commissioner Poskochil asked Director Tyrrell if the Commission
had received Mr. Viveros

=
background check. Director Tyrrell said no, because Mr. Viveros was not yet an
applicant. If something else showed up on a background check, he would bring the
person back to the Commission.

After discussion, a motion was made by Moline and seconded by
Shepard to allow Mr. Viveros to sit for the salesperson examination after making
proper application, and to have a license issued upon passing.

Commissioner Johnson asked if Mr. Viveros had talked to any
brokers regarding employment. Mr. Viveros said no, he did not want to get his
hopes up. Commissioner Johnson asked if his instructor supported his getting a
license. Mr. Viveros said yes, especially because the Hispanic community was
growing in Omaha. Brokers needed bilingual people.

Commissioner Strand said Mr. Viveros was to be commended on his
recommendations, which were from people who had known him for 5-6 years, and on
turning his life around. Mr. Viveros said when he was in jail, he thought about
how he got there, and how he let somebody talk him into doing that. It was a
good experience, and he will never do it again. As of July 21, Mr. Viveros would
have 8 years of sobriety. He wanted to continue that, and since he had his wife
and kids, he wanted to be a good role model for his kids.

A vote was taken on the pending motion. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

=s
special appearance, information regarding Mr. Colvin=s
criminal history, reference letters, and an education transcript. A copy of said
exhibit is attached to and made a part of these minutes. Mr. Colvin was present.

Acting Chairperson Wiebusch reviewed the procedure for informal
special appearances.

Mr. Colvin said that, 9 years ago, he worked at a grocery store.
He decided to take some money, against his better judgment. They confronted him,
he admitted it, and he was convicted. He served 2 years on probation.

Commissioner Strand said he appreciated the recommendation
letters. They were helpful from people who had known him for a long time.

Commissioner Moline asked if Mr. Colvin had been in trouble with
law enforcement since his conviction. Mr. Colvin said not before and not since.
Mr. Colvin said he had been in the military police. Commissioner Moline asked if
Mr. Colvin had paid restitution. Mr. Colvin said yes, he paid full restitution,
and got his civil rights back in January 1998. In the future, Mr. Colvin will
request expungement. It had been almost 9 years now, and he had considered
waiting to apply until his record was expunged, but he wanted to get into real
estate now. His fiancee had made calls to the Commission office, and had found
out he did not have to wait until he got a pardon.

After discussion, a motion was made by Strand and seconded by
Moline to allow Mr. Colvin to sit for the salesperson examination after making
proper application, and to have a license issued upon passing.

Commissioner Johnson asked if Mr. Colvin was currently employed.
Mr. Colvin said yes, but he would leave that employer when classes started.
Commissioner Johnson asked if Mr. Colvin understood this was a commission-based
business. Mr. Colvin said yes, and all his friends in the business thought he
could do it.

A vote was taken on the pending motion. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

=s
special appearance, information regarding Ms. Swanson=s
license disciplinary history, and reference letters. A copy of said exhibit is
attached to and made a part of these minutes. Ms. Swanson was present.

Acting Chairperson Wiebusch reviewed the procedure for informal
special appearances.

Ms. Swanson presented an exhibit which consisted of her resume.
A copy of said exhibit is attached to and made a part of these minutes, denoted
as exhibit 12c1.

Ms. Swanson said she had been a mental health counselor. She had
a lot of health issues. She was a recovering alcoholic, had been drinking for
about a year when this happened, had been in total denial, and had withdrawn
from her support groups. She quit seeing a client and started dating him. That
was totally against anything she considered appropriate, and she self-reported
her violation. Since then, she could have gotten a provisional license back, but
she chose not to go back into mental health counseling because of her situation.
The relationship that had resulted was violent. She was now committed to
maintaining her recovery. She had gotten a health insurance sales license, but
there was a great deal of road travel, which was difficult with her spinal
injury. She quit selling health insurance in January, and had helped her mom
with her health issues until her death last month. She considered this an
opportunity for a new career. Acting Chairperson Wiebusch said she had wondered
about the break in Ms. Swanson

=s
work history.

Commissioner Moline noted that Ms. Swanson had trouble with
alcohol in the past, and asked if she drank now. Ms. Swanson said absolutely
not. She participated in Alcoholics Anonymous, and had done service work with
that too. She did personal sponsoring as well. She had been sober for 4 years.

Commissioner Strand questioned how Ms. Swanson could get her
counseling license back. Ms. Swanson said she was eligible to apply to get a
provisional license back, because she had dealt with the issues involved.
Commissioner Strand noted that, if the license had been reinstated or if Ms.
Swanson had waited one more year, her application would not have crossed the
Commission

=s
radar. The Commission should take those circumstances into account.

After discussion, a motion was made by Strand and seconded by
Moline to allow Ms. Swanson to sit for the salesperson examination after making
proper application, and to have a license issued upon passing.

=s
comment. Commissioner Strand clarified that it has already been 4 years since
the disciplinary action was taken against Ms. Swanson=s
license, and that if it had been over 5 years or if the license had been
reinstated, her application would not have come before the Commission.

Commissioner Moline noted Ms. Swanson

=s
spinal injury, and that real estate licensees were in and out of cars all the
time. Ms. Swanson said she was driving across state all the time with the health
insurance sales license, which was not the same. Movement such as showing houses
would be very good for her.

Commissioner Johnson asked if Ms. Swanson had talked to a broker
about employment. Ms. Swanson said yes.

A vote was taken on the pending motion. Motion carried with
Johnson, Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with
Gale not participating or voting, being absent and excused.

Consider VOW Guidance Article for Commission Comment

Director Tyrrell presented an exhibit which was a draft of a VOW
(virtual office website) guidance article for the Commission Comment. A copy of
said exhibit is attached to and made a part of these minutes.

Director Tyrrell noted that the Commissioners had requested a
draft article or letter regarding guidance for licensees on virtual office
websites. Director Tyrrell asked what action was taken regarding the VOW policy
at the National Association of REALTORS

7
meeting in Washington, DC. Commissioner Moline said implementation had been
delayed another 6 months.

Director Tyrrell noted that Counsel Widger had registered at a
VOW, and developed the article based on her experience. Director Tyrrell asked
if the Commission wanted staff to hold off on it, since the VOW policy was
delayed again. The additional delay could be included in the explanatory
paragraph at the top. It came down to 2 issues - when agency disclosure is made,
and that it was advertising which must comply with advertising regulations.
Those issues were addressed in the article.

7
Association, how long implementation was delayed. Mr. Neilan said it was delayed
untilJanuary 2005.

Director Tyrrell said staff could put the article into the June
Commission Comment, or delay it until the policy was implemented. Commissioner
Moline said he would want to put the article out now, because VOWs were
advertising. As more jurisdictions said it was advertising, it clarified the
issue. If licensees were thinking about implementing VOWs, the article would
give them something to consider.

Acting Chairperson Wiebusch asked if Counsel Widger had anything
to add. Counsel Widger said she went to the website of a person who maintained
that VOWs were absolutely not advertising. The website gave a huge disclosure,
which was very thorough, and stated that registering and submitting information
was not creating an agency relationship with the company. Counsel Widger
accepted the terms, and went into the website. The listings were searchable by
criteria. She got 10-12 listings which matched her criteria, and they clearly
identified listing agents in the Boulder, Colorado, area. She submitted her
contact information, and got an email back immediately from a licensee at the
company which asked if she could look at houses on Saturday from 10 to 12.
Counsel Widger wrote back and indicated that Saturday would not work for her,
but she wanted to know if any inspections had been done and asked tons of
questions. Counsel Widger noted that she sent her emails from her office, which
identified herself as an attorney, but did not indicate she was working for the
Nebraska Real Estate Commission. The response stated that a buyer disclosure
would be given after a purchase agreement was written, and that inspections were
not given until the property was under contract. Counsel Widger stated that the
properties were subject to Colorado law, and she saw no Nebraska properties
listed on the website. The licensee said he would show her the properties, and
she would choose whether he should act as a transaction agent or buyer agent
before the showings. He offered to email the choices to her for her to consider,
and asked again when to schedule showings. She thanked him for providing the
information, but said she would not be coming to Colorado. Counsel Widger
occasionally got emails from the company when the status changed on a property
she had selected.

Director Tyrrell noted that it was no different than if a
licensee today had a website through the firm or the MLS, and/or somehow got an
email regarding a property and started corresponding with the interested party.
There was nothing in a VOW that a licensee could not do in person. People using
the website had to register. Counsel Widger noted that the disclosure that they
were not acting as her agent was on the opening screen. A VOW provided for the
online creation of an agency relationship. This company said it was a VOW, and
Counsel Widger did not see any distinction between that and any other form of
web-based advertising.

Commissioner Moline asked if consent was needed for VOWs to
advertise other brokers

=
listings. Director Tyrrell said the consent of the seller had to be in writing,
which was normally done in the listing agreement, and included the MLS. He and
Counsel Widger thought that if it was in the listing agreement to advertise the
property with other brokers, then that could be used for website-based
advertising. The next step in the discussion was that it had to be made clear
whose listing it was.

Director Tyrrell said that, as he understood the VOW rules, like
the MLS and the National Association of REALTORS

7
Code of Ethics, they would apply unless state or local laws provide differently.
Even if there was no opt-out, state law in Nebraska would apply to Nebraska
properties, and brokers would still need the seller=s
consent.

Commissioner Moline said it was good to treat VOWs as
advertising. Director Tyrrell noted that, if a VOW advertised Nebraska property
for sale, the broker would need a Nebraska real estate license to do it. It was
the same as if they overtly prospected in Nebraska.

Commissioner Moline said this was a deep issue, and he thought
staff should publish the article. It was the consensus of the Commission to
publish the article in the June Commission Comment.

Discussion on Length of Processing Time for Criminal History
Background Checks

Director Tyrrell presented an exhibit regarding the length of
processing time for criminal history background checks. A copy of said exhibit
is attached to and made a part of these minutes.

Director Tyrrell noted that Commissioner Moline had asked for a
discussion item regarding this topic on the next meeting agenda. Staff had
invited Nebraska State Patrol representatives to answer the Commission

=s
questions.

Director Tyrrell introduced Lieutenant John Shelton of the
Nebraska State Patrol. Lt. Shelton distributed an exhibit regarding processing
time for applicant criminal history requests. A copy of said exhibit is attached
to and made a part of these minutes, denoted as exhibit 14a.

Lt. Shelton gave a general overview of criminal history
procedures. Lt. Shelton said that, at State Patrol offices across the state, one
person is generally assigned to roll fingerprints, but that was not the person

=s
primary job. There has been a backlog in Omaha, which has a high volume of
requests, because the person only rolls fingerprints for 4 hours once a week.
Due to staff turnover and promotion, the applicant criminal history request
section had been understaffed. At the same time, requests for reports had
increased exponentially. As of April 19 they were fully staffed, and they had
caught up on a significant amount of reports. They were expecting even more
requests as more agencies and businesses required applicants to have criminal
history checks.

Commissioner Moline noted that people at Nebraska REALTORS

7
Association meetings had discussed with him their displeasure regarding the time
it took to get a criminal history report. Commissioner Moline asked if
applicants were paying enough for the Patrol to have enough staff to do the
reports in a timely manner. Lt. Shelton said the entire state was in a financial
crunch, and noted that the Patrol could not hire new troopers this year. They
were allowed to use cash funds to help supplement their division somewhat, and
to hire civilian staff. They had also taken on more responsibility for division
costs, such as rent and salaries, which used to be paid by the agency.

Commissioner Strand noted that the county and city governments
in Lincoln created interlocal agreements, which were government-to-government,
regarding some staffing issues. Maybe the Commission could pay to have a
dedicated person for real estate applicant fingerprint reports. Priorities were
always a moving target, but these were livelihood issues. Lt. Shelton said they
were currently researching whether the fees charged covered all the costs
involved, which had not been reviewed for years. He met with Health and Human
Services (HHS) representatives, who were researching the possibility of
providing funds to hire a person for HHS applicant fingerprint reports. He did
not know at which step in the process the person would work.

Commissioner Poskochil said it appeared that requests were
currently at 500 per month. Lt. Shelton said they had received 18,000 requests
so far in 2004. He did not know how many people it would take to get reports
done in 7-10 days. They also had a space issue, and will be moving soon so that
they can expand their personnel. In their current location, there was no place
for an extra person to sit right now. Commissioner Poskochil asked how long it
would be until they had a regular mean time, since they were now fully staffed.
Lt. Shelton said he hated to be pinpointed, but he expected this to become a
manageable number by early- to mid-fall. There should be a significant impact
soon. Commissioner Strand said that was as long as demand did not continue to
grow. Lt. Shelton noted that the Patriot Act required that all CDL (Commercial
Driver

=s
License) drivers will have to have a criminal history report by January 1, 2005,
and could not drive until they had it.

Commissioner Moline asked if it was appropriate for Commission
staff to talk to HHS, and work with them to hire another person. The licensees
he had talked to wanted to go to work, and would have willingly paid $5-10 more
to get the report done sooner. Lt. Shelton said the Patrol would need
legislative approval to increase the fee. Commissioner Moline asked how the
Commission could facilitate this happening faster. Lt. Shelton said that, to
increase fees, they would need justification, and need to get approval up
through the Governor. Commissioner Strand said it might be helpful to split the
issue. Since livelihood licensing requirements would be relatively stable,
perhaps the Commission could pay to keep it a stable amount of time to get
reports back. Livelihood reports should not have to compete with other types of
reports.

Director Tyrrell asked whose FTE (full-time employee) the HHS
person would be. He noted the Commission would also have to go to the
Legislature. If it was an FTE that Director Tyrrell controlled, it would be
simpler to go from 11 to 12 staff at the Commission, since it was a cash fund,
non-code agency. Director Tyrrell asked if the Commission was supporting a
Patrol staff person, at a general fund, code agency with some cash funds, once
the money went from the Commission account to the Patrol

=s,
was there an assurance that it would be paid for that, or could that FTE be
gone. Lt. Shelton said he was working with Nancy Montinez at HHS. FTEs were
generally for officers, but they could hire as many civilians as they could
afford.

Commissioner Moline suggested that Director Tyrrell work with
Lt. Shelton and the HHS person to come up with a plan to get to the same end.
Maybe the Commission could be helpful. This was a big issue for the Nebraska
REALTORS

7
Association. Director Tyrrell said working together was not a problem for the
Commission. Commissioner Strand said the trucker issue made it more urgent. Lt.
Shelton noted that everyone in a medical profession, not just doctors, would
soon be required to have criminal history reports. Patrol staff had not expected
the difference in requests from 2003 to 2004, plus the staffing issues they had.

Director Tyrrell noted that the Commission office could house
the additional staff person, especially since space was currently an issue.

It was the consensus of the Commission that Director Tyrrell
work with Lt. Shelton and HHS regarding funding a person to do real estate
fingerprint-based criminal history reports.

Commissioner Strand added that, if the processing time was an
ongoing problem, staff should look at changing the Commission procedure
regarding not allowing applicants to sit for the examination until the report
was completed. It was tough timing for people going back to school. Director
Tyrrell said that depended on how we wrote the law. Commissioner Strand asked
that Director Tyrrell look into allowing applicants to take the test before the
report came back. Director Tyrrell said he will look at that too.

Legislative Matters - Final Session Report

Director Tyrrell noted that LB 845 was passed by the Legislature
and signed by the Governor. Director Tyrrell also reviewed the final status of
other bills of interest to the Commission. All the bills that had not passed had
died, because the Legislature

=s
two-year session had ended in April.

Acting Chairperson Wiebusch asked if anyone had heard from
Chairperson Gale regarding the working group on home inspector licensing.
Director Tyrrell said Commission staff had not heard anything on that. Acting
Chairperson Wiebusch said she had emailed him a suggestion she had received from
a Kearney home inspector.

Director Tyrrell noted that the ARELLO Mid-Year Meeting was held
in Omaha on April 21-24, 2004. Director Tyrrell reported that the strategic plan
was progressing well. There was a big session on the license preemption issue.
It appeared that the National Association of REALTORS

7
and the Conference of State Bank Supervisors did not mind if there was
preemption, as long as the Comptroller of the Currency, who was viewed as a
bureaucrat, did not do it. It appeared that they would not mind if Congress did
it. ARELLO took the position that preemption should not be done by anyone, and
would be pushing to get the National Association of REALTORS7
to support that position. ARELLO was concerned that the National Association of
REALTORS7
would decide federal regulation was OK, like they did with the appraisal issue
in 1989. The Commission Member Training Board would be doing some beneficial
things, such as booklets on rules of evidence and a skit on decorum and
demeanor. South Africa had invited the Senior Officers and their significant
others to visit at South Africa=s
expense for 3-5 days, to show ARELLO that they could host a meeting there.
Director Tyrrell also reviewed future meeting dates.

Acting Chairperson Wiebusch said there were no hot issues in the
roundtable discussions. Commissioner Poskochil said the session on buyer

=s
dual agency from Canada was frustrating, because we were so far ahead of them on
that. Commissioner Shepard agreed that some issues were pretty confused, and it
was hard to talk across jurisdictions on agency, especially dual agency.
Commissioner Johnson said some jurisdictions were convinced that Colorado was
right on agency. Director Tyrrell noted that Mike Gorham was doing consulting
work for Canada, so the concepts of transaction brokerage and having a single
license were being discussed there.

Acting Chairperson Wiebusch agreed that it was hard to talk
across jurisdiction lines. There was no consistency with license requirements
and terminology. The dream of the Strategic Planning Committee was to have some
consistency, and also to make ARELLO a proactive entity that jurisdictions or
governments went to for answers. These were lofty goals and aspirations, and
Acting Chairperson Wiebusch totally concurred with them. The process was not
done yet, but a huge step had been taken. Director Tyrrell said that the 3-5
year objectives would be the subject of real discussion. Acting Chairperson
Wiebusch asked if a draft of the objectives was on the ARELLO website. Director
Tyrrell said the member section had changed considerably, but the draft was
there.

Acting Chairperson Wiebusch said she wished she had been on the
Communications Committee before now, because she was having a ball on it. The
committee was looking at jazzing up the ARELLO Digest, so it would be used all
the time. They were considering making it a journal, featuring hot topics, and
issuing it more frequently. They were also reviewing the ARELLO public and
member websites, and coming up with suggestions so that ARELLO websites were
easier to use for new members. She noted that Director Tyrrell gave a report on
Commission member training. She was one of three members who were reviewing the
new member orientation CD, and coming up with suggestions. She also had fun
planning the district meeting, and encouraged the other Commissioners to attend.

Acting Chairperson Wiebusch said she got a handout on ARELLO
continuing education course approval requirements. Director Tyrrell said it was
probably a white paper at the continuing education session. Commissioner
Poskochil said there was an error on it, which was noted in the session, and it
would be updated. Commissioner Moline noted that the Nebraska Realtors
Association was currently trying to compile information on that. Acting
Chairperson Wiebusch said she would share the information with them.
Commissioner Poskochil said he did not know which information was in error.
Acting Chairperson Wiebusch said she thought that, of all the states, the only
one without continuing education requirements was New Jersey.

Commissioner Johnson said he thought it was nice that Joan Nigro
got to introduce her friend, Mayor of Omaha Mike Fahey. Former Commissioner
Nigro had also created a restaurant list for attendees. Acting Chairperson
Wiebusch thought the meeting coordinators might have been able to make a better
presentation on what Omaha had to offer for entertainment, in addition to the
restaurant list.

Commissioner Johnson said attendees with whom he talked had
enjoyed the places they visited, such as the Western Heritage Museum and Joslyn
Art Museum. Director Tyrrell said some attendees had not known Nebraska had so
much to offer. They also said it was true what they had heard, that people
actually said

Ahi@
on the street even if they did not know you.

No action was necessary on this report.

Trust Account Examination Evaluation Report - First Quarter
2004

Director Tyrrell presented the Trust Account Examination
Evaluation Report - Third Quarter 2003. A copy of said report is attached to and
made a part of these minutes.

Director Tyrrell reported that comments were again very
positive. He reviewed some of the comments received, and how the situations were
handled.

No action was necessary on this report.

Errors and Omissions Insurance Loss Report - First Quarter
2004

Director Tyrrell presented the Errors and Omissions Insurance
Loss Report - First Quarter 2004. A copy of said report is attached to and made
a part of these minutes.

Director Tyrrell reported that the Title 300, Chapter 1,
Retirement Subdivisions and Communities rule changes had been approved by
Governor and were filed with Secretary of State on May 17, 2004. The changes
will be effective May 22, 2004, and operational July 1, 2004.

No action was necessary on this report.

Approval of Travel to ARELLO Advanced Investigator Workshop

Director Tyrrell presented information regarding the costs of
sending Deputy Director for Enforcement Mayrose to the ARELLO Advanced
Investigator Workshop in Denver on August 12-14, 2004. A copy of said exhibit is
attached to and made a part of these minutes. Total cost was expected to be
approximately $1228.00.

After discussion, a motion was made by Moline and seconded by
Shepard to approve the expenditures as presented. Motion carried with Johnson,
Moline, Poskochil, Shepard, Strand, and Wiebusch voting aye, and with Gale not
participating or voting, being absent and excused.

At 4:41 p.m., Commissioner Strand was excused from the remainder
of the meeting.

At 4:48 p.m. on May 19, there being no further business to come
before the Commission, a motion was made by Poskochil and seconded by Moline
that the meeting adjourn. Motion carried with Johnson, Moline, Poskochil,
Shepard, and Wiebusch voting aye, and with Strand and Gale not participating or
voting, being absent and excused.

I, Les Tyrrell, Director of the Nebraska Real Estate Commission,
do hereby certify that the foregoing minutes of the May 19, 2004, meeting of the
Nebraska Real Estate Commission were available for inspection on June 2, 2004,
in compliance with Section 84-1413(5) R.R.S. 1943, of Nebraska.